Indiaonline.dghindia.org/dsf/Content/pdf/02_India... · India’s share in world energy – 5.3% India and China have accounted for much of the growth in the past decade Indian energy

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September 12, 2016London

India: Economic and Energy Overview

Discovered Small Field Bidding Round – 2016


Emerging markets have been growing strongly in recent years


While world economy as a whole is forecast to grow by 2.7% in 2016… India stands out even within Asia.

Policy reforms and growth in investment to drive and sustain India’s growth

Source: IMF forecasts (%)

2.6

1.7

1.0

2.2

-3.5

-1.0

7.5

6.3

2.6

1.7

0.3

2.2

0.0

1.0

7.5

6.0

-6 -4 -2 0 2 4 6 8 10

2017 2016

U.S.

Euro -zoneJapan

UK

Russia

China

India

Brazil

International Monetary Fund (IMF) has predicted that India would retain the

status of the fastest growing large economy in

the foreseeable future


$18.90

$21.10

$38.50

$56.60

$63

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00

Pakistan

Vietnam

Indonesia

China

India

India replaced China as the top destination for FDI in 2015

Top FDI Destination in Asia-Pacific in 2015 (USD Billion)


Notes: #: advance estimates;

#FY16: 7.6FY15:7.2FY13: 5.6

FY16: 4.9FY15:5.9FY13: 10.2

FY16: 2.6FY15:2.8FY13: 1.1

2014: $7252011: $632

FY16: $360 bn

FY15:$341.6 bn

FY13: $292 bn

FY15: $310.3 bn

FY14:$314.4 bn

GDP growth (%) Consumer price index inflation (%)

Index of industrial production growth (%)

Household final consumption

expenditure per capita

Forex reserves Exports

India’s economic fundamentals is strong across key indicators – Government’s inflation focus helping drive long term sustainable growth


Reforms across the board driving growth and transformation of the economy

Enhancing manufacturing through investments, innovation, and infrastructure

To enhance business conduciveness, through investor-friendly measures

Creation 100 Smart Cities and rejuvenation of 500 cities (through AMRUT)

A system to rank states based on the 98-point action plan launched to enhance business conditions

400 million youth to be skilled by 2022.

100% FDI allowed under the automatic approval route for railway infrastructure

A digital empowered economy and knowledge economy

Digitisation of user payments, digital wallets, computerisation of ration shops and payment banks

FDI norms in 15 sectors liberalised;distinction between FDI and FPI eliminated

Make in India to Ease of Doing Business driving investor sentiments


China23%

US17%

India5%Russian

Federation5%

Japan4%

Others46%

Source : BP Statistical Review 2016

Primary Energy Consumption

-

100

200

300

400

500

600

700

800 India’s share in world energy – 5.3%

India and China have accounted for much of the growth in the past decade

Indian energy growth in 2015 outstripped China’s by a large margin

Close to 80% of India’s oil is imported. India is striving to reduce this import dependence

Source : BP Statistical Review 2016

India’s primary energy consumption has increased at a CAGR of 5% since 2010


7

22

20

4

35

24

PSU

Private Players

Foreign Players

Non-operatorsOperators

PSC regime has seen participation from significant number of private and foreign players

Source : Directorate General of Hydrocarbon (DGH)

• “As on Q2FY16, the upstream sector attracted a total of US$ 40 bn investments under PSC regime”

• ~21% of the total production of oil and gas was contributed by private and JV players


Government’s Visions for Energy Sector will drive and sustain domestic growth of O&G Sector

PSC: Production Sharing Contract

Hydrocarbon Exploration and Licensing Policy (HELP)

Open Acreage Licensing Policy (OALP)

Marketing and pricing freedom for gas production*

Extension of 28 PSC for small, medium & discovered

fields

Quadrupling PNG connections to 1 crore households by 2019

Reduce oil imports dependence by 10% by 2022

Make In India - Enhancingdomestic production

*from High Pressure High Temperature, Deepwater and Ultra Deepwater areas

Maximum GovernanceMinimum Government


Government’s has initiated programs across the entire sector to improve its attractiveness

~11000 Kms of pipelines to be built by 2020Source: PPAC

More than100 City Gas Distribution systems to start operations by 2020Source: PPAC

Current LNG Regasification capacity is 21.24 MMTPA across 4 terminalsRe-gasification capacity to expect grow multifold

Source: PPAC

The domestic petrochemical industry is in the process of investing over~US$25 billion to meet the surging demand

Source: CPMA India

23.5 MMTPA refining capacity expansion planned in the coming yearsSource: MoPNG Annual Report, 2016

Plans to auction more than 1500 sq. kms. In Discovered Small Fields Bid Round 2016

Source: DGH

Thank you

Indiaonline.dghindia.org/dsf/Content/pdf/02_India... · India’s share in world energy – 5.3% India and China have accounted for much of the growth in the past decade Indian energy

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